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Mixed Reports: Auto Repair Shops Doing Great, But Some are not.

Joe Marconi
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JamisonAutoGroup Explorer

JamisonAutoGroup

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Thank you for bringing this up, Joe!  I agree with both of you that it does seem to be an ongoing thing.  As the previous comment suggested, " Some shops are better run than others".  This is in my opinion, the leading factor in a business's success or demise.  Some shop owners are more geared toward marketing and branding (like me), others are geared more to the technical side of the diagnostics and repairs.  In any case, I feel it is critical to be well educated in these areas of the business, among others. The most important thing a business owner should be focused on though, is the KPIs.  This tells you the pulse of the business, and how to steer the business in the right direction.  An owner who doesn't know their numbers, does not know their business!

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juanpablo4219 Explorer

juanpablo4219

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Here's where we are.

We had a great first half of the year. We grew 15% compared to last year. I do considered the Summer, a change of season and consumer habits. When June arrives the consumer behavior/spending habit change to  the vacation period. Kids are out schools and  families travel, life is good for shops. This year has been the exception, the heat wave that we're going through does not help in south Texas or any place in Texas.

Texas has a hot summer, but the 100 plus temperature does not help at all. It just does not invite people  to go outside. 

I do advertise on Google and I have been checking everyday, and my conclusion is that not many people are looking for services, since I am paying less than the usual budget. 

August is a different month, a lot of the parents who have kids in college come to services their kid's Car, get them ready for their kids to go back to school, I am hoping things will turn around, even thou" August is the hottest part of the summer🤞😁
...and this is my mid year report

Regards and stay cool😎

JP

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      Technician Production is More Complicated than You Think
      By Joe Marconi in Joe's Blog
         0 comments
      Auto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
      As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
      But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
      Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
      Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
      Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
      The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.

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